A joint venture (JV) between Texas-based engineering firm Fluor Corporation and Japan’s JGC Holdings Corporation has been hired to work on bringing to life the expansion of the liquefied natural gas (LNG) facility located in Kitimat, British Columbia, Canada.
Fluor and JGC’s JV has been selected to deliver engineering, procurement, fabrication, construction, and commissioning for Phase 2 of LNG Canada’s LNG export facility in Kitimat, British Columbia.
The joint venture received notice to proceed (NTP) following Shell’s final investment decision (FID) for the project. Fluor has confirmed that it will recognize its $7.5 billion share of the multibillion-dollar contract in the third quarter of fiscal 2026.
Jim Breuer, Chief Executive Officer of Fluor, commented: “LNG Canada Phase 1 was a landmark achievement for Fluor, and we are excited to carry that momentum into the next chapter.
“The decision to proceed with Phase 2 reflects confidence in Canada’s ability to responsibly develop its natural gas resources and connect them with global markets. Our teams will apply the experience and lessons learned from Phase 1 to deliver a successful project.”
Phase 2 will encompass the construction and commissioning of an additional LNG storage tank and two new liquefaction units, known as trains, doubling the facility’s production capacity to approximately 28 million tonnes per annum.
Fluor explains this expansion will enhance processing, storage, and shipping capabilities to meet growing LNG demand. The Phase 2 award builds on the joint venture’s delivery of Phase 1 and its established track record on the project.
Pierre Bechelany, Fluor’s Business Group President of Energy Solutions, underlined: “Reaching FID is an important milestone for LNG Canada and Fluor. Our long-standing relationship and successful delivery of Phase 1 provides a strong foundation for the work ahead. As construction progresses, our focus will remain on safety, quality and collaboration with our partners, First Nations and local communities.”
The joint venture delivered Phase 1, including engineering, procurement, fabrication management, construction, and commissioning of two processing trains and associated infrastructure. The facility began producing LNG in June 2025, with the handover of the facility completed in October 2025.
In August 2025, JGC and Fluor were awarded a contract by LNG Canada to update the front end engineering and design (FEED) for the proposed expansion and to provide estimation services for the related engineering, procurement, and construction (EPC) scope.
Located on Canada’s west coast, the LNG Canada site benefits from access to abundant natural gas resources and an ice‑free deepwater harbor. With the Phase 2 expansion, the facility will be positioned to make a greater long‑term contribution to global energy security and strengthen Canada’s position as an LNG exporter.
Masayuki Sato, Representative Director, Chairman, President & CEO of JGC Holdings Corporation, noted: "We are proud to continue our contribution to this landmark project as the Phase 2 expansion moves forward following LNG Canada's final investment decision and issuance of NTP.
“Building on the successful delivery of Phase 1, we will work closely with LNG Canada and Fluor to help ensure the safe, responsible and efficient execution of the Phase 2 expansion, which will further strengthen Canada's role as a supplier of lower-carbon LNG to global markets."
The Phase 1 plant has an annual production capacity of approximately 14 million tonnes of LNG and will operate under a 40-year export license. The next phase of the project will double the production capacity. LNG Canada is a joint venture comprised of Shell (40%), Petronas (25%), PetroChina (15%), Mitsubishi Corporation (15%), and KOGAS (5%).